Lee announces it will file for bankruptcy

Today Lee Enterprises announced plans to file a “pre-packaged” Chapter 11 bankruptcy to restructure part of it’s debt. Read the updated story in the Post-Dispatch here.

The Guild is working to figure out exactly what it means for the employees and what to expect next. We will update unitedmediaguild.com when we get more details.

We immediately put a call into Astrid Garcia, VP HR, Labor, Operations at The St Louis Post -Dispatch, because of the bankruptcy she is unable to immediately speak to what the impact on the Guild employees would be. But she working to get answers from Davenport on a list of questions we asked her about how the bankruptcy will effect people at the St. Louis Post-Dispatch.

When we get more information we’ll update this blog posting.

Also follow us on twitter @UMediaGuild for updates

****Update****

The Guild’s Treasurer, and St. Louis Post-Dispatch Business writer Jim Gallagher had these thoughts about today’s announcement.

“Lee is filing a “pre-packaged” bankruptcy. This means that the vast majority of creditors have reached a refinancing agreement, but they need the authority of the court to force the deal on the dissenters.

Lee has two levels of debt. It says it has 94 percent of creditor agreement to the largest level of debt, and 100 percent agreement on the smaller level of debt.
Dissenters may argue that the agreement is unfair. But if what Lee says is true, they should be able to force this agreement through. The company says that should take less than 60 days.

If all goes as Lee plans, our Guild contract will survive. If Lee planned to try to change it, they would have contacted us by now. They know that an effort to change that contract through bankruptcy would push this deal well, well beyond 60 days.

The deal will have Lee paying 9 percent interest on its debt as opposed to 5 percent under the current deal. This ought to be manageable for them — they say it is — as long as revenues hold up. That, of course, is an iffy proposition.

However, the higher interest payments will keep Lee focused on cost control, which means tight budgets, possibly for years to come.”

Astrid Garcia called back and said she couldn’t give an specifics or statements on the bankruptcy. But said she hoped our questions could be answered during a 6pm news conference that Lee held. She declined to give us a phone number to dial into the press conference. Post-Dispatch reporters covering the story were able to join the press conference.

In an email exchange with Bernie Lunzer, Newspaper Guild-CWA President, on Friday evening he expressed confidence things would be alright “ it’s a “pre-packaged” bankruptcy and should leave the CBA (collective bargaining agreement) intact. We’ll want legal advice of course. I’m thinking it will be okay though.”

If we get any more information this weekend we’ll post it here. If you have any questions you can email the Guild at this address unitedmediaguild@gmail.com and we’ll do our best to get you an answer.

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Good question, we are meeting with Astrid Garcia on Monday morning. I’m sure we’ll cover that topic and many others, but it’s hard to say at this point how much she’ll be able to say or knows. Although given Lee Enterprises track record at keeping there word and promises we’re also getting legal advice on the necessary steps we need to take to protect the members and the benefits owed to our retirees.

Bearing in mind that Lee has filed nothing yet, in all our discussions with management we have consistently been assured that Lee had no intention of changing our collective bargaining agreement OR attempting to get the bankruptcy court to weigh-in on our lawsuit.

That said, your union will take every step it can to ensure that our member’s – actives and retirees – rights are safeguarded.

We are the Newspaper Guild

Why journalists join the Guild

Why we organize

We Are the United Media Guild

The Newspaper Guild traces it roots to the groundbreaking American Journalists Association, founded in 1919 in St. Louis as a trade association for journalists. Although not connected to organized labor, the AJA sought to improve working conditions for journalists at the Post-Dispatch, the Globe-Democrat, the Star-Times, the Daily Record and the Republic newspapers. Post-Dispatch music and drama critic R.L. Stokes was president of the fledgling group.

After the AJA lost influence, famed journalist Heywood Broun helped found the American Newspaper Guild in 1933. St. Louis became the 47th local to join, bringing the Post-Dispatch, Globe-Democrat and Star-Times into the new labor union. In time St. Louis became a one-newspaper town with only the Post-Dispatch surviving. But along the way Local 47 expanded by adding additional units – including the Labor Tribune, the St. Louis Review and KSDK-TV – which still exist today.

In 1997 the union, now known as The Newspaper Guild merged with the Communications Workers of America. Our Local 47 became known officially as TNG-CWA Local 36047. The St. Louis Newspaper Guild broadened its horizons in recent years, bringing the Jobs with Justice organization, the national Truthout web site, the Pekin (Ill.) Daily Times, the Workers Interfaith Network of Memphis, the State Journal-Register of Springfield, Ill., the Rockford Register Star and the Freeport (Ill.) Journal-Standard into the local.

After agreeing to merge with the Peoria Newspaper Guild in 2011, our local changed its name to the United Media Guild to reflect its broader reach.

OUR VISION

We welcome the opportunity to help unionize workplaces at media companies and non-profit organizations in the Midwest and Mid-South. We can build strength in numbers by bringing like-minded groups together in a common cause.

OUR COMMITMENT TO JOURNALISM

Organized labor has never been more valuable to its members, especially in the economically distressed media sector. Traditional newspaper, television and radio companies are faltering due to changing technologies, evolving consumer tastes, new media competition, a stagnant economy, tight financial markets and crippling corporate debt.

Corporate cutbacks have gutted many newsrooms and threatened the journalism profession. The United Media Guild is pushing back by fighting for its members and the important work they do for Lee Enterprises, GateHouse, Gannett and other companies.

OUR COMMITMENT TO SOCIAL JUSTICE

Just as journalists play a vital role in a democratic society, so do non-profit organizations and advocacy groups. The UMG and the larger CWA community provide a vehicle for community-minded operations share resources, exchange ideas and work together on important issues.